Merger Arbitrage Book Excerpt - Index
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Index of the book "Merger Arbitrage: How To Profit From Event-Driven Arbitrage" by Thomas Kirchner. John Wiley Finance 2009. ISBN 0470371978. Available at Amazon, Barnes & Noble, Borders and other ...

Index of the book "Merger Arbitrage: How To Profit From Event-Driven Arbitrage" by Thomas Kirchner. John Wiley Finance 2009. ISBN 0470371978. Available at Amazon, Barnes & Noble, Borders and other booksellers.

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Merger Arbitrage Book Excerpt - Index Document Transcript

  • 1. P1: a/b P2: c/d QC: e/f T1: g ind JWBT114-Kirchner May 30, 2009 11:18 Printer: Yet to come Index AL A.C. Nielsen Co., 134 Bank of America Corp., 81, 126 Academic finance theory, 3 Bank mergers, 49 Accipiter Capital Management, 50 BankAmerica Corp., 81 RI Active premium, 291 Barclay Hedge database, 283, 285, 291 Activist merger arbitrage, 246–247 Basis trades, 5 TE Administrative Measures on the Acquisition Bass, Robert M., 137 of Listed Companies (China), 282 Bell Atlantic Corp., 81 Advisory Research, 63, 64–65, 263 Bellman equation, 324 Aegis Communications, 189–190 Bendix, 160 MA Agere Systems, 19–28, 32, 92, 98 Bergstein, David, 54, 129 AirTouch Communications Inc., 81 Bessemer Venture Partners, 141 AllServe Systems plc, 190 Beta risk, 5 Allstate Corp., 81 Bid/offer spread, 77–78, 317–318 ED America Online Inc., 81 Bidding wars, 100–102 American Capital Strategies (ACAS), Black-Scholes analysis, 275, 303–304 194–195 Blackstone, 128, 197–198 American Community Properties Trust, Blair, William, 141–142 HT 161 Blasius Industries, 155 American General Corp., 81 Blunt, Matt, 232 American Physicians Capital (ACAP), 51 Boesky, Ivan, ix IG Anheuser-Busch, 78–79, 100–101, 211, Bond financing, 124, 127–128 232–233, 239 Bond futures, basis trades in, 5 Antitrust enforcement, 213–223 Books and records, inspection of, 260–262 R Antitrust problems, 49 Boruso v. Communications Telesystems APP Pharmaceuticals Inc., 135 Intern., 256 PY Appraisal actions, outcome of, 252 BP America, 81 Appraisal rights, 248–256 Breakup fees, 53–60, 156 Arbitrage. See also Merger arbitrage average, for completed and canceled CO cash-and-carry, 3 mergers, 57–58 definition of, 3 Bridge loans, 126 multiple, 197 A Brief History of Time (Hawking), xi orders of, 4 “Bright line” test, 112 Arbitrage Fund (ARBFX), 297, 300 Bris, Arturo, 313 Arcapita, Inc., 237 Bristol-Myers Co., 81 ARCO Chemical, 203 Broadridge, 263 Arizona Corporation Commission, 43, 233 Brokerage commissions, 315–317 Arnhold & S. Bleichroeder, 197 Brownian motion, 304 Atari, Inc., 163–165 Bryant, Warren, 242 Atlas Corporation, 155 Business conditions, changes in, 47–48 347
  • 2. P1: a/b P2: c/d QC: e/f T1: g ind JWBT114-Kirchner May 30, 2009 11:18 Printer: Yet to come 348 INDEX Business judgment rule, 149, 175, 182 Conde, Cristobal, 170 ´ Buybacks (leveraged recapitalizations), 161 Contel Corp., 81 Buyer breakup fees, 53, 56 Contingent value rights (CVRs), 134–135 Buyer and target, relative size of, 49 Contracts for difference (CFDs), 307 Convertible debt, 189 Cagle’s Inc., 211–212 Corporate raiders, 156–157 Capital asset pricing model (CAPM), Correlation, 268 274–275 Countrywide Financial, 126 risk statistics in a CAPM framework, Cr´ dit Agricole Structured Asset e 291–292 Management Center for International Capital Cities/ABC Inc., 81 Securities and Derivatives Markets Cash holdings, 318–325 (CASAM CISDM), 283, 285, 291, Cash mergers, 11, 12–19, 73, 319, 320, 321 295 idealized chart of stock in, 15 Credit crunch, 142 payoff diagram of, 12 Credit risk, management of, 8–10 CCA Industries, 8 CSX, 239 Cede & Co., 251, 255, 263 CtW Investment Group, 242, 264 Cede & Co. v. JERC Acquisition Corp., 253 CVS Caremark, 241–242, 264 Cede & Co. v. Medpointe Healthcare, Inc., Cypress Communications, 237 252 Cede & Co. v. Technicolor, 252 Deal spread. See Spread Celanese AG, 197–198 Debt funding, types of, 122–130 Celebrate Express, 107–108 bank loans, 124–125 Centel Corp., 81 bonds, 127–128 Central Freight, 183–185 bridge loans, 126 related party transactions of, 183–184 hedge fund financing, 129 Change of control covenants, 119, 166 mezzanine debt, 127 Chaparral Resources, 207–210, 243, 256 sale and leaseback financing, 128 Chicago Board Options Exchange, 303 seller financing, 129–130 Chicago Mercantile Exchange, 303 stapled financing, 130 Children’s Investment Fund, The (TCI), 239 Definitive agreement, 8 Citicorp, 81 Department of Justice (DOJ), 213, 214, 215, Citigroup, 136 217, 220 Claiborne, Liz, 7 Discounted cash flows (DCFs), 250 Class Action Fairness Act of 2005, 257 Dissenters’ rights, 248 Class actions, 256–260 Diversification, 294 Clayton Act, 214 Diversified arbitrageurs, 283 CNPC, 207–208 Dividend recapitalization, 196 Coast Financial Holdings, 131–133 Dividends, 87–90 Cogent Hedge database, 283 Dobler v. Montgomery Cellular Holdings Collars, mergers with, 32–41 Co., 252 fixed share, 32–33, 37, 40 Doctors’ Company, The, 51, 263 fixed value, 32, 33, 34, 36 Doft & Co. v. Travelocity.com, 253 Collateralized loan obligations (CLOs), 124 Dolphin Limited Partnership, 204–207 Comcast Corp., 81 Dow Chemical, 215, 216 Commissions, 98–100 Downside deviation, 292 Committee on Foreign Investments in the Dubilier & Co., 8 U.S. (CFIUS), 237–239 Due diligence, 52–53 Compound interest, 17 questionnaires (DDQs), 302 Concentrated arbitrageurs, 282 DUET Group, 76
  • 3. P1: a/b P2: c/d QC: e/f T1: g ind JWBT114-Kirchner May 30, 2009 11:18 Printer: Yet to come Index 349 Duff & Phelps, 164 uncertain merger consideration, 131–135 Dun & Bradstreet Corp., 134 adjustments to merger consideration, Dynegy, 52–53 131–133 unusual forms of payment, 134–135 Earnings before interest, taxes, depreciation, Finish Line, 139 and amortization (EBITDA), 6 Finley, Johan P., 130 East Penn Financial Corporation, 37–40 First Banks, Inc., 131 Eddie Bauer Holdings, 155–156 First Boston, 142 EDGAR system (SEC), 165, 225, 228, 231 First Data, 153–154 Efficient frontier, 294–295, 296, 299–300 FleetBoston Financial Corp., 81 Eisner, Michael, 191–192, 257–258 Florida Rock Industries, Inc., 30–32 Enron, 52–53, 182 Flowers, JC, 56, 59, 139–140 Enterprise M&A Fund (EMAXX), 298 Foodarama Supermarkets, 260 Equity Office Properties Trust, 19, 128 Footlocker, 139 Error term, 6 Forstmann Little & Co., 152 Esmark, 240–241 Francisco Partners, 170 Essar Steel, 240–241 Franklin Mutual Advisers, 240 Evans, Edward P., 137–138, 191 Fraud, 52–53 Event risk, 5–6, 47, 327 Fresenius Medical Care, 135 Expected return. See Net return FTSE Hedge Fund Indices, 283, 285, 288, 289, 291 Fagan, Bill, 256 FX Real Estate & Entertainment Inc., 233, Farallon Capital Management, 129 234–236 Fastow, Andrew, 182 Federal Communications Commission, 213 Gabelli, Mario, 248 Federal Energy Regulatory Commission, Gabelli ABC Fund (GABCX), 298 213 Gain deviation, 292 Federal Reserve, Regulation T, 94, 113, 131, GARCH models, 267 303 GE Capital Solutions, 13, 62, 85 Federal Reserve Bank of St. Louis, 220, 221 General Motors, 314 Federal Trade Commission (FTC), 213, 214, Genesco, 139 215, 217, 219, 220 Genesis Healthcare, 154 horizontal merger investigations, 219 Gentile v. Singlepoint Financial, 254 Fiduciary out, 156 Geographic reach, 217 Financing, 47, 119–143 Gholl v. eMachines, Inc., 252 debt funding, types of, 122–130 Glass-Steagall Act, 135 bank loans, 124–125 Go-shop clause, 153, 154 bonds, 127–128 Going-private transactions, SEC regulation bridge loans, 126 in, 230–231, 280 hedge fund financing, 129 Golden parachutes, 51, 111–112, 166, mezzanine debt, 127 168–169 sale and leaseback financing, 128 Goldman Sachs Group, 59, 147, 198 seller financing, 129–130 Goldsmith, Sir James, 156 stapled financing, 130 Gonsalves v. Straight Arrow Publishers, 254 fairness opinions, 140–142 Goodman Global, 129 inability to obtain, 47 Gordon, Angelo, 260 investment banks, conflicted role of, Gramm-Leach-Bliley Act of 1999, 135 135–140 Greenwich Alternative Investments, 283, of mergers versus tender offers, 130–131 285, 291 systemic risk, 142–143 Gross return, calculation of, 32
  • 4. P1: a/b P2: c/d QC: e/f T1: g ind JWBT114-Kirchner May 30, 2009 11:18 Printer: Yet to come 350 INDEX Grupo Modelo, 100, 101 Interactive Brokers, 311 Grupo Santander, 52 Interest, in annualizing return, 17 GSO Capital Partners, 129 Internal rate of return (IRR), calculation of, GTE Corp., 81 18–19 Gupta, Vinod, 204–207 Internal Revenue Code Section 368, 104 Haji-Ioannou, Stelios, 146 subchapter M, 89 Harman International Industries, 60 Investing in merger arbitrage, 301–337 Harleysville National Corporation, 37–40 hedge funds and mutual funds, 333–337 Hart-Scott-Rodino Antitrust Improvements leverage and options, 302–309 Act of 1976 (HSR), 110, 214 managing the cash position, 318–325 Hawking, Stephen, xi risk management, 325–328 Health Care REIT, Inc., 33–37 separate accounts, 331–333 Hedge fund databases, 283–284 shorting stocks, 309–315 Hedge fund financing, 129 Standard & Poor’s Merger Arbitrage Hedge Fund Research (HFR) database, 283, Index, 329–331 285, 289, 291, 295 trading versus investing, 301–302 Hedge funds, 333–337 transaction costs, 315–318 advantages of mutual funds over, 334–335 bid/offer spreads, 317–318 custody, 335 brokerage commissions, 315–317 liquidity, 335 market impact, 318 lower fees, 334–335 Investment banks, conflicted role of, lower minimum investments, 335 135–140 performance reporting, 335 Investment Company Act of 1940, 336 tax reporting, 335 Investor Group, 81 Hedging, delta-neutral, 37, 40 iShares Lehman Aggregate Bond, 299 Hellman & Friedman LLC, 129 ISS A/S, 147 Hennessee Group database, 283, 285, 291, 295, 310 J. Jill, 7 Hennessee Short Biased Index, 309 Jekogian, Nickolas W. III, 77 Herfindahl-Hirschman Index (HHI), Jobs and Growth Tax Relief Reconciliation 217–222 Act of 2003, 87 Heyman, Samuel, 156 Jorion, Philippe, 327–328 Hostile bids, 8, 100–102 Junk bonds, 127–128, 142–143 Hostile takeovers, 155 market collapse, 142–143 IBP, 48 King Pharmaceuticals, 311–312 Icahn, Carl, 156 Kohlberg Kravis Roberts & Co. (KKR), 43, Image Entertainment, 54, 129 59, 137–139, 153–154, 233 IMS International, Inc., 134 Kravis, Henry, 156 In re Emerging Communications, Inc., 253 InBev SA, 100, 211, 232–233, 239 Lafarge North America, 82, 83 Independence Community Bank, 52 Lafarge S.A., 82 Infogrames Entertainment SA, 164 Lane v. Cancer Treatment Centers of Information ratio, 291 America, 252 Information Resources, Inc., 134 Lazard Freres, 137–138, 164 infoUSA (infoGroup), 204–207 Lehman Brothers, 192 Ingersoll-Rand Co., 25, 29, 98 Letter of intent, 8 Insider trading, 16 Leverage, 93–95, 302–309 Insight Venture Partners, 141 Leveraged buyouts (LBOs), 121–122, 327
  • 5. P1: a/b P2: c/d QC: e/f T1: g ind JWBT114-Kirchner May 30, 2009 11:18 Printer: Yet to come Index 351 Liberty Media, 107–108 returns for different portfolios, 277 Lipper TASS database, 284 role of in a diversified portfolio, 267–300 Lipton, Martin, 256 benefits, 292–300 Liquidity, two aspects of, 73–80 merger arbitrage outside the United Loews Theaters Corp., 81 States, 278–282 London Interbank Offered Rate (LIBOR), return and correlation characteristics, 17, 94, 125, 282, 307 272–278 Longs Drug Stores, 241–242, 264 volatility of stocks going through a Loss, probability-weighted, 44 merger, 268–272 Loss deviation, 292 return and correlation characteristics of LS Cable, 97 merger arbitrage, 272–278 LSI Logic Corporation, 19–28, 92, 98 risk and return of funds, 282–292 Lukoil, 207–210, 243, 256, 259 stock-for-stock mergers, 19–41 Lyondell Petrochemical Company, 203 mergers with collars, 32–41 mixed cash/stock mergers, 29–32 Macmillan, Inc., 137–139, 141, 191 Merger categories, 11–12 Macquarie Infrastructure Partners, 75–76 cash mergers, 11, 12–19 Management buyouts (MBOs), 121–122, mixed stock and cash mergers, 11, 29–32 163, 172–175, 191 other considerations, 12 long-term planning in, 173–182 stock-for-stock mergers, 11, 19–41 Management incentives, 163–185 mergers with collars, 32–41 management compensation, 165–171 mixed cash/stock mergers, 29–32 private equity buyouts, continuing Merger Fund (MERFX), 297, 300 management interest in, 171–173 Merger Mania (Boesky), ix management buyouts, long-term planning Merger process, 148–156 in, 173–182 Mergers, 82–85, 103–115, 130–135, related party transactions, milking a 243–264 company through, 182–185 fighting abuse of shareholders in, 243–264 Margin borrowing, 93–95, 303 activist merger arbitrage, 246–247 Mark-to-market valuation, 317 legal tactics, 248–262 Market impact, 318 public opposition, 262–264 Market makers, 77 selling shares, 243–245 Material adverse change (MAC), 48 financing of, versus tender offers, Maryland Control Share Acquisition Act, 130–131, 145–161 161 government involvement in, 213–242 Maxwell, Robert, 137–139, 191 antitrust enforcement, 213–223 MCI Communications Corp., 81 federal government, 236–239 Merger arbitrage, 3–41, 267–300 state government, 231–236 cash mergers, 11, 12–19 SEC’s approach to regulation, investing in, 301–337 223–228 hedge funds and mutual funds, 333–337 trade unions, 240–242 leverage and options, 302–309 legal aspects of, 145–161 managing the cash position, 318–325 merger process, 148–156 risk management, 325–328 takeover defenses, 156–161 separate accounts, 331–333 shareholder acceptance in, 111 shorting stocks, 309–315 and tender offers, 103–115 Standard & Poor’s Merger Arbitrage comparison of, 109–115 Index, 329–331 time period required to complete, 82–85 trading versus investing, 301–302 timing in, 110 transaction costs, 315–318 triangular, 103–108
  • 6. P1: a/b P2: c/d QC: e/f T1: g ind JWBT114-Kirchner May 30, 2009 11:18 Printer: Yet to come 352 INDEX Mergers (continued) OneChicago, 303 uncertain merger consideration, 131–135 OneSource Information Services, 158–159 adjustments to merger consideration, 130/30 strategies, 307 131–133 Open Text Corporation, 166–168 unusual forms of payment, 134–135 change of control provisions of, 167–168 upstream, 106 Option selling, 10–11 Merisel, Inc., 193–195 Options, 302–309 Milken, Michael, 127 Oracle, 157 Miller, Merton, 87 Minority squeeze-outs. See Squeeze-outs, P&O Dubai Ports World, 237 minority Pac-Man takeover defense, 160–161 Mixed stock and cash mergers, 11, 29–32 Pantry Pride, 152 impact of short rebate in, 91 Paskill Corp. v. Alcoma Corp., 254 Modigliani, Franco, 87 Paulson & Co., 197–198 Moody’s Investor Services, 327–328 Payoff distribution for stock investors, 9–10 Mordashov, Alexei, 240 asymmetric, 10 Morningstar/InvestorForce database, 284 PDS Gaming, 130 Moyes, Jerry, 183–185 Peltz, Nelson, 156 MSCI Hedge Invest index, 284 Pennsylvania Avenue Event-Driven Fund Multiple arbitrage, 197 (PAEDX), 298, 299, 300 Mutual funds, 333–337 Peoplesoft, 157 advantages over hedge funds, 334–335 Perelman, Ron, 152 custody, 335 Perry Corp., 311–312 liquidity, 335 Pershing Square Capital Management and lower fees, 334–335 Advisory Research, 241, 263 lower minimum investments, 335 Pfizer Inc., 81 performance reporting, 335 Pharmacia Corp., 81 tax reporting, 335 Pickens, T. Boone, 150, 156 ban on short selling in, 336 Pinnacle Gas Resources, 51, 63, 64–65, 66, Mylan Laboratories, 311–312 161 Poison pills, 158–159 Naked short, 313 Portfolio turnover, 98–100 Nascimento, Juliana, 323, 324–325 Powell, Warren, 323, 324–325 National Home Health Care Corp., 260 Prescott Group Small Cap v. The Coleman NCS, 154–155 Co., 253 Negative alpha, 308–309 Prince, Charles (“Chuck”), 136 Nelson Resources, 207–208 Private equity buyouts, 171–173, 187–198 Neoware, 119, 120 CEOs’ role in, 191–193 Net returns, 68–69 continuing management interest in, Netsmart, 141–142, 175–182 171–173 reasons for merger given by board, as financial engineering, 196–198 176–181 private equity funds’ agenda, 193–196 Newsvendor formula, 323 private equity’s advantage, 188–190 NYNEX Corp., 81 Private investments in public equity (PIPE), 189 OAO Severstal, 240–241 Private Securities Litigation Reform Act of Ocean Tomo, 165 1995, 257 Odyssey HealthCare, 50–51 Probability-weighted loss, 44 Ohio Mattress Company, 142–143 Probability-weighted return. See Net return Omnicare, Inc. v. NCS HealthCare, 155 Product reach, 217
  • 7. P1: a/b P2: c/d QC: e/f T1: g ind JWBT114-Kirchner May 30, 2009 11:18 Printer: Yet to come Index 353 Proxy campaigns, 263–264 liquidity, two aspects of, 73–80 Proxy statements, 163, 224 short sales as a hedge and an element of Prudential PLC, 81 return, 90–93 Risk spectrum of merger-related investments, Quantitative analysis, 65–66 6–7 Quasi-arbitrage, 5 RiskMetrics methodology, 272 Quest Resource Corp., 51, 63, 64–65, 66, RJR Nabisco Inc., 81 161 Rohm & Haas, 215, 216 Questar, 189, 190 Rule 14d-10 (best price rule), 111–112, 230 Quiznos, 256 Rumors, as component of risk spectrum, 6–7 Ryan Beck & Co., 52 Real estate investment trusts (REITs), 13, 17, Ryan, Tom, 242 86–87, 89, 128 ReFlow Management Co., 322 S&P Depositary Receipts, 299 Regulation SHO, 313 Sack, Burton (“Skip”), 248 Regulation T (Federal Reserve), 94, 113, Sale and leaseback financing, 128 131, 303 Sallie Mae, 56, 59, 139–140 Related party transactions, milking a Sarbanes-Oxley, 172–173 company through, 182–185 SCPIE, 51, 263 Relational Investors, 52 Securities and Exchange Act, Section 10b-5, Restoration Hardware, 260 257 Retail investors, 312–313 Securities and Exchange Commission (SEC), Reverse breakup fees, 53, 56 7–8, 145, 163, 213, 223–231, 280, Revlon v. MacAndrews & Forbes, 152, 312, 313 153 approach to regulation, 224–231 Risk, incorporating into the arbitrage going-private transactions, 230–231 decision, 43–69 mergers, 223–228 closing, probability of, 45–60 tender offers, 228–230 antitrust problems, 49 EDGAR system, 165, 225, 228, 231 breakup fees, 53–60 Form 8-K, 225 business conditions, changes in, Form 15, 224 47–48 Rule 14E, 229–230 buyer and target, relative size of, 49 Schedule 13D filings, 7–8, 203 due diligence and fraud, 52–53 Schedule 13E-3, 163, 164, 165, 203, 224, financing, inability to obtain, 47 226, 230–231 management opposition, 51–52 Schedule 13G, 203 public intervention, 48–49 Schedule 14A, 224, 226 shareholder opposition, 49–51 Schedule 14C, 224 expected return of the arbitrage, 68–69 Schedule 14D-1, 224 losses, severity of, 60–68 Schedule 14D-9, 224, 230 Risk management, 325–328 Schedule TO, 224, 228 Risk and return, sources of, 71–102 Security Pacific, 81 bidding wars and hostile bids, 100–102 Seller financing, 129–130 closing, timing and speed of, 80–87 Semi deviation, 292 commissions and portfolio turnover, Shareholder activism, 242 98–100 Sharpe ratio, 291 covered call writing, 95–97 Sherman Act of 1890, 214 deal spread, 71–73 Shire Pharmaceuticals, 255 dividends, 87–90 Shorin, Arthur T., 191–192 leverage, 93–95 Short-form merger, 50
  • 8. P1: a/b P2: c/d QC: e/f T1: g ind JWBT114-Kirchner May 30, 2009 11:18 Printer: Yet to come 354 INDEX Short rebate, 27–28, 73, 90–91, 311 Stonington Partners, L.P., 193–195 impact on stock-for-stock mergers, 91 Sungard Data Systems, 169–170, 171–172 as part of merger arbitrage strategy, 292 Superior Essex Inc., 97 Short sales, 20, 21, 27, 80, 90–93, 307–315, Surface Transportation Board, 213 327 Swaps, 305, 307 as a hedge and an element of return, 90–93 Symphony Technology, 134 ban on, 313–314, 336 in mutual funds, 336 Takeover defenses, 156–161 Short squeeze, 92, 312 buybacks (leveraged recapitalizations), Signal Companies, 151 161 Siliconix, 202 cumulative voting, 160 Silver Lake Partners, 169–170 freeze-out, 161 Silverstein, Scott, 191–192 poison pills, 158–159 Simon Properties Group, 232 reincorporation in a less Simple interest, 17 shareholder-friendly state, 160 SISU Capital Ltd., 256, 259 multiple classes of stock, 160 Smithfield Foods, 48 Pac-Man, 160–161 Social activism, 242 staggered boards, 159–160 Solomon v. Pathe Communications Corp., Takeunder, 16 152 Target breakup fees, 53, 56 Sonder, Claudio, 197 Tashman, Adam, 328 Sortino ratio, 292 Taubman Centers, Inc., 232 Sovereign Bancorp, 52 Tax Increase Prevention and Reconciliation SPAR-Mutual algorithm, 324–325 Act of 2005, 87–88 Speculation, 5 Taylor v. American Specialty Retailing Spread, 13, 71–73, 85–86 Group, 254 bid/offer, 77–78 Taylorist principles, 165 Sprint Corp., 81 Tele-Communications Inc., 81 Squeeze-outs, 82, 199–212 Tender offers, 50, 80, 82, 84, 103–115, 224, minority, 199–212 228–230, 264 boards’ lack of effectiveness during, comparison of mergers and, 109–115 200–202 Rule 14d-10 (best price rule), 111–112, family control, 210–212 230 minority shareholders in, 202–210 shareholder acceptance in, 111 Squibb Corp., 81 timing in, 110 Staggered boards, 159–160 financing of, versus mergers, 130–131 Standard Oil Co., 81 SEC regulation in, 228–230 Standard & Poor’s Merger Arbitrage Index, Rule 14E, 229–230 329–331, 332, 333 statements, 224 downside risk measures, 333 withholding shares in, 264 performance of relative to other asset Tennenbaum & Co., 134 classes, 330 Time value of money, 250, 258 risk/return trade-off for, 332 Time Warner, 81 statistics of monthly returns of, 331 Topps, 191–193, 257–258 Stapled financing, 130 Top-up option, 8, 109 Stelmar Shipping, 146 Tracking error, 291 Stilwell, 51, 263 Trade unions, role of in mergers, Stock-for-stock mergers, 11, 19–41, 50, 73, 240–242 98, 99, 319 Trading volume, 73, 75 impact of short rebate on, 91 Trane, Inc., 25, 29, 98
  • 9. P1: a/b P2: c/d QC: e/f T1: g ind JWBT114-Kirchner May 30, 2009 11:18 Printer: Yet to come Index 355 Transaction costs, 315–318 Vector Capital, 170–171 bid/offer spreads, 317–318 Vishay Intertechnology, 202 brokerage commissions, 315–317 VistaCare, 50–51 market impact, 318 Vodafone Group PLC, 81 Transkaryotic Therapies, 255 Volatility, 267–272 Travelers Group Inc., 81 Volkswagen, 312 Treasury bills (T bills), 17 Voting, cumulative, 160 Treynor ratio, 291 Vulcan Materials Company, 30–32 Tri-Star Pictures Inc., 81 Tropicana Casino, 233–234 Wachovia Bank, 220, 221, 222 Trustreet Properties, Inc., 13–19, 61, 62, Walgreens, 242, 263 72, 74, 76–77, 85, 87, 88, 98, 268, Walt Disney Co., 81 269 Wasserstein, Bruce, 137–139, 140, 141 Tyson Foods, 48 Watchguard, 170–171 Weighted average cost of capital (WACC), UBS, 139–140 250 Union Illinois 1995 Investment Limited Wells Fargo Bank, 220, 221, 222 Partnership v. Union Financial Group Westfield America Trust, 232 Ltd., 253 “White knight,” 6, 52 Unisource Energy, 43, 44, 233 Whole Foods, 220 United Steelworkers (USW), 240–241 Wild Oats, 220 Unocal Corp., 81 Wilshire Enterprises, 77–78, 106, 201, 226, Unocal v. Mesa Petroleum, 150 227–228 UOP, Inc., 151 Windrose Medical Properties Trust, 33–37 Upper Deck, 191–193, 257–258 Women’s Wear Daily, 7 Utility mergers, 48–49 WorldCom Inc., 81, 121 World Focus, 190 Value-at-risk methodologies, 272 Wyser-Pratte, Guy, ix Value trap, 244 Van Gorkom, Delaware Supreme Court Zilbermints, Boris, 208 ruling in, 141, 150 Zwirn, D. B., & Co., 129
  • 10. P1: a/b P2: c/d QC: e/f T1: g ind JWBT114-Kirchner May 30, 2009 11:18 Printer: Yet to come 356